Nobody says Google is the answer -- that was just one small example of a situation where someone upset the incumbent and caused decreased price and better service purely through competition with no additional government legislation.
We need more of that from more companies.
Perhaps a better solution is to government fund small ISP's (they exist, look for them) and help them develop their own infrastructure in major cities. It will not be an overnight solution no, but it's far better imo than permanent legislation that might just kill the innovation you seek to spur.
Look at the state of DSL. It's delivered over POTS lines and falls under the legislation governing said lines. If an ISP runs lines to provide DSL service, they are required to lease the lines to whoever wants them (other isp's) for cost (not much profit made from this transaction). Suddenly everyone abandoned DSL in favor of Fiber and Cable services, and we've seen speeds exponentially grow in this area.
POTS lines already exist to every home in the USA, why not use them? DSL2+ has greatly increased the speeds, but still few ISP's use it. It's because of the huge legislative hurdles they have to jump over just to provide the service (I have a friend who is a WISP in the bay area of CA, and this is the reason he gave me for why he's not currently also running DSL to homes in his service region).
We risk doing the same if we regulate all internet carrying lines.
I really think it's better to somehow grow a lot more ISP's that operate in great competition. I don't know the perfect solution or how to go about accomplishing this -- but I do know free competition almost always trumps legislation. What we don't have right now is free competition (we have monopolies/duopolies).